Carnival Corporation & plc, the world’s largest cruise shipping cpmpany, said booked volumes and prices for 2020 turned lower versus year on in June, while new regulations will increase its fuel bill by $200 million next year
The group’s cumulative advanced bookings for the first half of 2020 are ahead of the prior year at prices that are in line compared to 2019 on a comparable basis.
“Since June, both booking volumes and prices for the first half of next year have been running lower than the prior year,” the company pointed out, the company said.
For full year 2020, the company expects capacity growth of approximately 7%. As previously indicated, in 2020 the company will increase its usage of Marine Gas Oil (MGO) as a percent of total fuel consumption as a result of the IMO sulfur emission regulations.
MGO is currently anticipated to represent approximately 40 %of fuel consumption for full year 2020 compared to approximately 20 %for full year 2019. Using fourth quarter September guidance fuel prices, fuel expense for full year 2020 is expected to be $1.8 billion compared to $1.6 billion expected for full year 2019.
The company currently expects depreciation to be approximately $2.4 billion for full year 2020 compared to $2.2 billion for full year 2019.
